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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
On January 1, 2019, the Company adopted ASU 2016-02 and all related amendments using the modified retrospective approach, which resulted in an increase in assets of $13,585 and an increase in current and long-term liabilities of $3,322 and $10,263, respectively. This adoption did not affect the Company’s results of operations or cash flows.
The Company determines if an arrangement is a lease at its inception. Operating leases are included in “Operating lease right-of-use assets,” “Other current liabilities,” and “Long-term operating lease liabilities” within the Consolidated Balance Sheets. Finance leases are included in “Property, plant, and equipment - net,” “Current maturities of long-term debt,” and “Long-term debt” in the Consolidated Balance Sheets.
Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments. The Company uses the implicit rate when readily determinable. The operating lease right-of-use asset also includes indirect costs incurred and lease payments made prior to the commencement date, less any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease and will be recognized when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
The Company has lease agreements with lease and non-lease components that it accounts for as a single lease component. Also, for certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities.
Finance lease and lessor accounting recognition has remained substantially unchanged under ASU 2016-02. The adoption of ASU 2016-02 had no impact on the Company’s balance sheets, results of operations, or cash flows for finance leases.
The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of December 31, 2020, its leases had remaining lease terms of 2 to 12 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 year.
The balance sheet components of the leases were as follows as of December 31, 2020 and 2019:
December 31, 2020December 31, 2019
Operating leases
Operating lease right-of-use assets$16,069 $11,280 
Other current liabilities$2,553 $2,268 
Long-term operating lease liabilities13,516 9,012 
Total operating lease liabilities$16,069 $11,280 
Finance leases
Property, plant, and equipment$1,116 $3,426 
Accumulated amortization(869)(2,892)
Property, plant, and equipment - net$247 $534 
Current maturities of long-term debt$119 $377 
Long-term debt128 157 
Total finance lease liabilities$247 $534 
The components of lease expense within the Consolidated Statements of Operations were as follows for the years ended December 31, 2020 and 2019:
Year Ended December 31,
20202019
Finance lease cost:
Amortization of finance leases$429 $692 
Interest on lease liabilities72 54 
Operating lease cost2,9643,176 
Sublease income(167)(18)
Total lease cost$3,298 $3,904 
The cash flow components of the leases were as follows for the year ended December 31, 2020 and 2019:
Year Ended December 31,
20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(3,636)$(3,829)
Financing cash flows from finance leases(461)(692)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$7,753 $2,495 
The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows for the periods presented:
December 31,
20202019
Operating lease weighted-average remaining lease term77
Operating lease weighted-average discount rate5.1 %5.2 %
Finance lease weighted-average remaining lease term11
Finance lease weighted-average discount rate4.2 %4.3 %
As of December 31, 2020, estimated annual maturities of lease liabilities for the year ending December 31, 2021 and thereafter were as follows:
Year Ending December 31,Operating LeasesFinance Leases
2021$3,305 $174 
20222,856 97 
20232,632 29 
20242,587 11 
20252,385 — 
2026 and thereafter5,378 — 
19,143 311 
Interest(3,074)(64)
Total$16,069 $247 
Leases Leases
On January 1, 2019, the Company adopted ASU 2016-02 and all related amendments using the modified retrospective approach, which resulted in an increase in assets of $13,585 and an increase in current and long-term liabilities of $3,322 and $10,263, respectively. This adoption did not affect the Company’s results of operations or cash flows.
The Company determines if an arrangement is a lease at its inception. Operating leases are included in “Operating lease right-of-use assets,” “Other current liabilities,” and “Long-term operating lease liabilities” within the Consolidated Balance Sheets. Finance leases are included in “Property, plant, and equipment - net,” “Current maturities of long-term debt,” and “Long-term debt” in the Consolidated Balance Sheets.
Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments. The Company uses the implicit rate when readily determinable. The operating lease right-of-use asset also includes indirect costs incurred and lease payments made prior to the commencement date, less any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease and will be recognized when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
The Company has lease agreements with lease and non-lease components that it accounts for as a single lease component. Also, for certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities.
Finance lease and lessor accounting recognition has remained substantially unchanged under ASU 2016-02. The adoption of ASU 2016-02 had no impact on the Company’s balance sheets, results of operations, or cash flows for finance leases.
The Company has operating and finance leases for manufacturing facilities, corporate offices, sales offices, vehicles, and certain equipment. As of December 31, 2020, its leases had remaining lease terms of 2 to 12 years, some of which include options to extend the leases for up to 12 years, and some of which include options to terminate the leases within 1 year.
The balance sheet components of the leases were as follows as of December 31, 2020 and 2019:
December 31, 2020December 31, 2019
Operating leases
Operating lease right-of-use assets$16,069 $11,280 
Other current liabilities$2,553 $2,268 
Long-term operating lease liabilities13,516 9,012 
Total operating lease liabilities$16,069 $11,280 
Finance leases
Property, plant, and equipment$1,116 $3,426 
Accumulated amortization(869)(2,892)
Property, plant, and equipment - net$247 $534 
Current maturities of long-term debt$119 $377 
Long-term debt128 157 
Total finance lease liabilities$247 $534 
The components of lease expense within the Consolidated Statements of Operations were as follows for the years ended December 31, 2020 and 2019:
Year Ended December 31,
20202019
Finance lease cost:
Amortization of finance leases$429 $692 
Interest on lease liabilities72 54 
Operating lease cost2,9643,176 
Sublease income(167)(18)
Total lease cost$3,298 $3,904 
The cash flow components of the leases were as follows for the year ended December 31, 2020 and 2019:
Year Ended December 31,
20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(3,636)$(3,829)
Financing cash flows from finance leases(461)(692)
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases$7,753 $2,495 
The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows for the periods presented:
December 31,
20202019
Operating lease weighted-average remaining lease term77
Operating lease weighted-average discount rate5.1 %5.2 %
Finance lease weighted-average remaining lease term11
Finance lease weighted-average discount rate4.2 %4.3 %
As of December 31, 2020, estimated annual maturities of lease liabilities for the year ending December 31, 2021 and thereafter were as follows:
Year Ending December 31,Operating LeasesFinance Leases
2021$3,305 $174 
20222,856 97 
20232,632 29 
20242,587 11 
20252,385 — 
2026 and thereafter5,378 — 
19,143 311 
Interest(3,074)(64)
Total$16,069 $247